Abstract:

This article examines the way in which policy has been developed in relation to
the recent reforms to the Social Fund, in particular the ‘‘external provider social
loan’’ scheme; policy that has now found its way into the Welfare Reform Act
2009. It then outlines and comments on the relevant statutory provisions in the
Act and discusses a number of issues arising from these reforms. The article
concludes that: the DWP’s consultation in December 2008 was unfortunately a
hurried affair; there remain more radical proposals to join up a reformed social
fund within the financial inclusion agenda; a full evaluation will only be possible
when the details of the scheme appear following further consultation; and, the
Government would be wise to rethink its current plan to disapply the social fund
review processes to the external provider social loans.